Monday, May 16, 2011

Wall Street Slips On Economic Worries, DryShips (NASDAQ: DRYS) Sinks

US stocks finished lower on Monday as mounting economic worries dented investor confidence.

The Dow Jones Industrial Average dropped 47.38 points, or 0.38%, to finish at 12,548.37. The S&P 500 shed 8.30 points, or 0.62%, to close at 1,329.47. The Nasdaq Composite declined 46.16 points, or 1.63%, to 2,782.31.

The New York Fed reported Monday that its Empire State manufacturing index dropped to 11.9 in May from 21.7 in April. Economists expected the index to drop to 18 in May.

The National Association of Homebuilders said its May index of builder confidence was unchanged from the previous month at 16, matching consensus.

J.C. Penney Co. (NYSE: JCP) reported Monday that its fiscal first-quarter profit climbed to $64 million, or 28 cents a share, from $60 million, or 25 cents, in the prior-year quarter. Revenue increased 0.4% to $3.94 billion from $3.93 billion. Analysts, on average, expected the company to report earnings of 25 cents per share on revenue of $3.95 billion. Shares of the company slumped $1.23, or 3.20%, to close at $37.21.

Shares of Sirius XM Radio Inc. (NASDAQ: SIRI) slumped more than 2% after the company said in an SEC filing that through Dec. 31, it won’t raise the price of its basic satellite radio service, other programming packages or its Internet streaming services. Sirius XM also said existing subscribers will be able to renew their subscription plans at current rates. Sirius XM also said it won’t object to requests to reimburse the lawsuit plaintiff for $13 million in legal fees and expenses.

Shares of DryShips, Inc. (NASDAQ: DRYS) sank 31 cents, or 7.05%, to close at $4.09. 

European stocks closed down. The UK FTSE fell 2.18 points, or 0.04% to 5,923.69. The German DAX and French CAC declned 0.21% and 0.72% respectively.

Asian stocks finished lower. The Nikkei 225 fell 90.47 points, or 0.94%, to 9,558.30. The Hang Seng index of Hong Kong dropped 315.64 points, or 1.36%, to 22,960.63.

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